# Technical Analysis Fundamentals

Technical analysis is the study of historical price and volume data to identify patterns and predict future market movements.

> **Dexorder scope**: Only crypto OHLCV data is available. TradFi data (equities, forex, bonds, options, macro) and alternative data (news, sentiment, on-chain) are **not** supported. See [`../pandas-ta-reference.md`](../pandas-ta-reference.md) for the full catalog of built-in indicators, and [`../indicators/indicator-development.md`](../indicators/indicator-development.md) for creating custom indicators.

## Key Concepts

### Price Action
Raw price movement without indicators:
- Support and resistance levels
- Trend lines and channels
- Chart patterns (head and shoulders, double tops, etc.)
- Candlestick patterns

### Trends
Markets move in trends:
- **Uptrend**: Higher highs and higher lows
- **Downtrend**: Lower highs and lower lows
- **Sideways**: Range-bound consolidation
- Trend strength measured by consistency

### Volume
Trading volume confirms price movements:
- High volume confirms trends
- Low volume suggests weak moves
- Volume precedes price
- Divergences signal reversals

## Common Indicators

### Trend Indicators
- **Moving Averages**: SMA, EMA, WMA
- **MACD**: Trend and momentum
- **ADX**: Trend strength
- **Parabolic SAR**: Trend direction

### Momentum Indicators
- **RSI**: Overbought/oversold conditions (0-100)
- **Stochastic**: Fast vs slow momentum
- **CCI**: Cyclical trends
- **Williams %R**: Momentum oscillator

### Volatility Indicators
- **Bollinger Bands**: Price envelope around MA
- **ATR**: Average True Range for volatility
- **Keltner Channels**: ATR-based bands
- **Donchian Channels**: High/low breakouts

### Volume Indicators
- **OBV**: On Balance Volume
- **VWAP**: Volume Weighted Average Price
- **Volume Profile**: Price levels by volume
- **Chaikin Money Flow**: Volume pressure

## Timeframes

Different timeframes for different strategies:
- **Scalping**: 1m, 5m charts
- **Day Trading**: 5m, 15m, 1h charts
- **Swing Trading**: 4h, 1D charts
- **Position Trading**: 1D, 1W charts

Always analyze multiple timeframes for context.

## Risk Management

Essential principles:
- **Position Sizing**: Risk 1-2% per trade
- **Stop Losses**: Define exit before entry
- **Risk/Reward**: Minimum 1:2 ratio
- **Diversification**: Multiple uncorrelated positions

Never trade without a plan and defined risk parameters.

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## See Also

- [`../pandas-ta-reference.md`](../pandas-ta-reference.md) — Full indicator catalog with calling conventions
- [`../indicators/indicator-development.md`](../indicators/indicator-development.md) — Custom indicator development
- [`../strategies/strategy-development.md`](../strategies/strategy-development.md) — Strategy development and backtesting
